Android navigation component popUpTo behaviour

Question

I am trying to figure out how to skip some fragments in a back stack of navigation component. I have application structure like this

- categories_fragment

    - category1_collection_fragment

        - category1_collection_item_view_fragment

        - category1_collection_item_edit_fragment

    - category2_collection_fragment

    ...etc

The workflow should look like this:

1. user enters application - categories_fragment is open by default
2. user opens category1_collection_fragment
3. user opens category1_collection_item_view_fragment
4. user opens category1_collection_item_edit_fragment
5. the user edits the item and saves it
6. user is presented with category1_collection_item_view_fragment
7. user clicks the back button and is taken to step 2 and can repeat 3 - 6 actions

Here's how navigation graph looks like:

<fragment
    android:id="@+id/categories_fragment"
    android:name="com.domain.CategoriesFragment">
    <action
        android:id="@+id/action_category1_collection_fragment"
        app:destination="@id/category1_collection_fragment" />
</fragment>

<fragment
    android:id="@+id/category1_collection_fragment"
    android:name="com.domain.category1.Category1CollectioNFragment">
    <action
        android:id="@+id/action_category_1_view_fragment"
        app:destination="@id/category1_view_fragment"/>
</fragment>

<fragment
    android:id="@+id/category1_view_fragment"
    android:name="com.domain.category1.Category1ViewFragment">
    <action
        android:id="@+id/action_view_fragment_to_edit_fragment"
        app:destination="@id/category1_edit_fragment" />
    <argument android:name="item" />
</fragment>

<fragment
    android:id="@+id/category1_edit_fragment"
    android:name="com.domain.category1.Category1EditFragment">
    <action
        android:id="@+id/action_edit_fragment_to_view_fragment"
        app:destination="@id/category1_view_fragment"
        app:popUpTo="@+id/profile_collection_fragment"/>
    <argument android:name="item" />
</fragment>

What I have implemented kinda works and the user is taken to category1_collection_fragment after editing and clicking back button, however, I get crash when trying to open another/or same item in the collection. The error is navigation destination is unknown to this NavController.

I checked what navigation controller destinations were changed during this cycle using addOnNavigatedListener:

1. categories_fragment
this one is obvious it's open by default

2. category1_collection_fragment
when user click on the action that takes him to the collection

3. category1_collection_view_fragment
when the user selects an item from the collection and opens it

4. category1_collection_edit_fragment
when the user clicks to edit item

now this next part it vier 3 steps happen at the same time when
navigation controller executes : @id/action_edit_fragment_to_view_fragment 
5. category1_collection_view_fragment
6. category1_collection_fragment
7. category1_collection_view_fragment

so the last destination that has been placed it category1_collection_view_fragment and even though I see category1_collection_fragment open which is what I want the destination is

category1_collection_view_fragment from which I am unable to open other items, and when I do I get the crash.

What's wrong with this? How can I make item save open view fragment without history about edit fragment being opened?

I was thinking about just using findNavController().popBackStack() instead of opening view fragment after save, but I need to pass an updated item data, to the view fragment and using this I can't do that.

EDIT

While trying to figure out what's happening I noticed that when toolbar is setup with navigation controller with setUpWithNavController navigate up icon is clicked, afterwards navigation works the way I want, but this not the case with back button, even though back button takes me to the fragment i want I can't navigate from there anywhere else due to the crash